Another big reason for this is if Leader has quit the game, or as recently happened in one big LS, been banned. If banned it looks like to me that the sackholders could at least be given the option of breaking the LS or establishing a new leader.
The LS is shot but the name is tied up forever and the thing cant be deleted.
SE could send an email to the owner of the name and ask if they wanted to keep it. If no answer they could just delete it.